Government Shutdown Update – Rural Housing Service

From a CARH Nov. 4, 2025 Broadcast Email—Legislative and Regulatory Alert

Congress has yet to reach an agreement on any of the Fiscal Year (FY) 2026 funding bills or a short-term Continuing Resolution. As a result, the federal government has shut down, and the shutdown is now entering its fifth week. As CARH members know, the longer the shutdown continues, the greater the impact will be on affordable housing programs that rely on federal funding.

On Friday, CARH, in collaboration with other industry groups, authored a letter to George Kelly, Administrator, Rural Housing Service, requesting interim guidance to help multifamily stakeholders maintain operations and continue serving residents effectively during the shutdown. CARH has been informed that Section 521 Rental Assistance (RA) funds already obligated will continue to be disbursed through December. Additionally, transactions that must close by year-end should be prioritized, particularly those involving tax credits with December deadlines. The agency also needs to ensure continued computer system access and timely communication with stakeholders. In the past, when a shutdown ended and a budget agreement was reached, temporarily halted programs received retroactive funding. We expect the same outcome when the current shutdown concludes, including for RA.

Currently, agency staff are unable to return phone calls or emails. However, if you have an urgent matter, we recommend sending an email to the appropriate staff member and copying the national CARH office. This will ensure the issue is documented so that CARH can assist with follow-up once a funding agreement is reached.

CARH will continue to urge members of Congress to pass a budget that will reopen the agencies impacted by the shutdown. There will undoubtedly be detailed discussions about the shutdown’s impact on rural housing programs at CARH’s Midyear Meeting, scheduled for January 26–28, 2026, at the Cheeca Lodge & Spa in Islamorada, Florida.